Diagonals versus Vertical Spreads

I have been doing vertical credit spreads for a while with a lot of success...but from what i gather in these boards and from books, many like diagonals better because the long position retains value and could even make money...and if it does move in your directions by the right amount, you make WAY more money.

However, it seems like it is very easy to not make money if the underlying stays put or moves against your position...where as the vertical makes move if the underlying stays put, moves against you or moves slightly towards your position

Lemme hear people opinions over why one is better than the other...personally, I'm attracted to the bigger money of diagonals, but more comfortable with verticals.

I have been doing vertical credit spreads for a while with a lot of success...but from what i gather in these boards and from books, many like diagonals better because the long position retains value and could even make money...and if it does move in your directions by the right amount, you make WAY more money.

However, it seems like it is very easy to not make money if the underlying stays put or moves against your position...where as the vertical makes move if the underlying stays put, moves against you or moves slightly towards your position

Lemme hear people opinions over why one is better than the other...personally, I'm attracted to the bigger money of diagonals, but more comfortable with verticals.

More...

Diagonal has a narrower profit range, and your prediction must be very precise. Credit spread has a wider profit range, and so usually a lower return, and a higher probability of making a profit. Actually, you can increase your return with credit spread by using CTM options.

Just because you are successful at one system doesn't mean you shouldn't try to compare it to others and see if you can find a better one...without acting on our desires to try new things and better our already "decent" situations, we'd all still be living in caves and wearing animal skin loincloths, writing our opinions on stone tablets.

And, yes, i have been reading the SPX credit spread journal...which is what led me to comparing the two strategies in the first place...eh, I'll probably end up trying diags occasionally if I see a really good opportunity...right now tho...I have very little clue what's gonna happen the next day or couple days with the SPX.

Diagonal has a narrower profit range, and your prediction must be very precise. Credit spread has a wider profit range, and so usually a lower return, and a higher probability of making a profit. Actually, you can increase your return with credit spread by using CTM options.